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“Current initiatives include closer working with the private sector to develop proposals for a city centre BID.

“This is designed to foster a stronger and more formal relationship between the city council and business owners, resulting in better marketing of the city centre, continuation of a strong events programme, and ensuring a safe, accessible and welcoming city centre that people come to by choice.”

Carlisle MP John Stevenson said the city must not become “unduly pessimistic” after the shop closures.

He said: “While we have seen some shops close, others have opened, like Hotter Shoes, White Stuff and the new Bocata deli at the corner of the Lowther Arcade and Lowther Street.

“This is a sign that these companies do see Carlisle as a place to do business.

“We are in difficult economic times and it’s hard for some retailers. But there are opportunities.

“I think the area around the Old Town Hall, which is home to Jaeger and Benetton, has an opportunity to develop its night time economy.

“The city council’s idea for a BID is exactly the right thing to do. Carlisle needs to encourage more tourism.

“Ultimately this is not just a local issue, it’s a national one. What we must do is get confidence back.”

The city’s current growth area centred around Carlisle Arcade, including Warwick Road, Lowther Street and Devonshire Street.

The Arcade had a £50,000 makeover, which included repainting and cleaning the roof glazing.

Stephen Sewell, a director of managing agent Walton Goodland, which looks after the Arcade, said: “This part of the city centre has picked up. It’s more affordable than English Street and Scotch Street, where rents are higher.”

Out-of-town shopping is also on the up. Toys ‘R’ Us announced it was staying in the city after opening a temporary Christmas pop-up shop. Next Home is pushing ahead with its plans for an out-of-town store at Kingstown and Wynsors World of Shoes will bring 15 jobs to the city when it opens in Shaddongate in March.

The UK has been warned it is now officially at risk of going into a double-dip recession.

The latest figures on the economy show a slight contraction in output, raising the nation’s fears of a second economic downturn.